Authorized Representative: TSSPDCL (Southern Power Distribution Company of Telangana Limited)

1. Tariff-based competitive bidding for procurement of 500 MW of solar power in TelanganaPre-bid Meeting 5 Sept 2014 Authorized Representative: TSSPDCL (Southern Power Distribution Company of Telangana Limited) Procurers: TSSPDCL and TSNPDCL

2. The purpose of this presentation is to provide a summary of the Bid Model for the Telangana solar tender. The model essentially revolves around a distributed generation format with projects connected at 33kV, 132 kV and 220 kV voltage levels. • Bidders have to rely on the bid documents available on the website for all the terms and conditions applicable for the Bid. This presentation only provides a quick overview and is not comprehensive in nature. In the event of any discrepancy between this presentation and the bid documents, the bid documents will overrule this document. • This presentation attempts to provide clarifications on some of the queries raised by the Bidders but Bidders should solely rely on the clarifications/amendments issued by the Authorized Representative on the eProcurement platform/website as the case may be

3. Brief Overview and Project Scope

4. Tariff, Evaluation and Payment

5. Evaluation of Bids and allocation of Interconnection Substations (1/3) • Bid Parameter under both tariff options shall be computed • Under option 1 , bid parameter is quoted tariff itself • Under option 2, bid parameter is levelized tariff computed based on quoted tariff (first year), escalation rates specified by Bidder and CERC notified discount rate • All Bid parameters are ranked from lowest to highest and allocation shall start from Bidder with first rank i.e. lowest tariff. In case bid parameters for two bids is the same, then the bid corresponding to higher offered capacity will be given better rank • Multiple Bids can be submitted by the Bidder. But allocation will happen in the stacking order of bid parameter only. Hence a bidder may have two positions in the ranking order ILLUSTRATION

6. Evaluation of Bids and allocation of Interconnection Substations (2/3) First round of allocation • Qualified Bidder with lowest rank will be allocated the most preferred Interconnection Substation from the List given by the Bidder and issued LOI for the Offered Capacity under the Financial Bid • At any stage if available capacity at the preferred s/s is less than offered capacity, then • Bidder can develop projects at reduced capacity • Bidder can chose next preferred s/s from the List • If available capacity at all preferred s/s in the list is less than offered capacity, then qualified bidder will be moved to second round of allocation Second round of allocation • All bidders moved to second round will be again ranked in order of bid parameter • Starting with lowest bidder in second round, qualified bidders will be invited to select any s/s from all the s/s where there is available capacity • In second round, bidder may either opt for developing projects at the available capacity or withdraw from the process (EMD will be returned) • Subsequent to finalization of Interconnection substations with qualified bidders, LOI will be issued

7. ILLUSTRATION

10. THANK YOU Authorized Representative: TSSPDCL